For those invested in different financial markets and investment opportunities, the start of 2021 has certainly been a very exciting year filled with opportunity – the launch of NFTs earlier in the year brought attention to blockchain markets once again and although the bubble burst and NFTs fizzled out rather quickly it did show the interesting opportunity, and the ongoing retail trading buzz with the likes of GameStop and AMC shows no signs of slowing down either. There has been news around another financial market, however, as cryptocurrency may be looking to go through a big change in the near future.
The biggest of the lot in Bitcoin has already seen plenty of ups and downs, finding a high point with reaching over $60,000 on a couple of occasions this year already, before seeing a drop to below half of this value following some big announcements and changes. Perhaps the biggest blow came when it was announced Tesla would be going back on its promise to offer the purchase of their vehicles for Bitcoin as cryptocurrency continues to try and find a market which it can best operate, whilst it has found a home in some industries particularly online with the likes of real money casinos at Casino Genie now beginning to offer crypto too, finding wider use has proved to be more difficult.
A big hit has come however with the crackdown on Bitcoin in China that has been seen in recent months, with environmental concerns leading the issue in some regards as this has been the call for the bigger names to be more cautious, and something that has harmed other blockchain-based tech like the previously mentioned NFT market too, the bigger issue has been that they feel as if the decentralized currencies have disrupted the normal order of the economy, and may still have bigger ties to illegal activities for which they were mostly known for before – although this same suggestion has been somewhat undermined by the countries plan to launch it’s own official digital currency in the e-yuan.
Picking up the huge infrastructure that has been built in China for Bitcoin and moving it is no easy feat as the country is responsible for a suggested 70% of all coins mined, taking the current set-ups that have been made on an industrial scale and moving them elsewhere with cheap energy to use may look to have a continued impact – Bitcoin has since recovered from it’s the lowest point of the year and now currently sits at around $32,000, but with the future uncertainty it could make those looking to invest in this financial option a little warier than the usual volatility problems associated with crypto, particularly as there’s still a lot of uncertainty in how the situation will play out.